Cash basis

Nonprofits stretch donations with bulk buying power

Updated 6:24 pm, Saturday, November 10, 2012

Workers move food items in the warehouse of the Regional Food Bank on Tuesday, Oct. 9, 2012 in Latham, NY. NOTE: ALL THE FOOD ITEMS BEING UNLOADED IN THESE PHOTOS WERE NOT DONATED BUT FOOD ITEMS THE FOOD BANK PURCHASED (Paul Buckowski / Times Union)

Workers move food items in the warehouse of the Regional Food Bank...

Dock worker Jason Crosby unloads food items from a truck in the warehouse of the Regional Food Bank on Tuesday, Oct. 9, 2012 in Latham, NY. NOTE: ALL THE FOOD ITEMS BEING UNLOADED IN THESE PHOTOS WERE NOT DONATED BUT FOOD ITEMS THE FOOD BANK PURCHASED (Paul Buckowski / Times Union)

Dock worker Jason Crosby unloads food items from a truck in the...

Warehouse supervisor Chris Hall unloads food items from a truck in the warehouse of the Regional Food Bank on Tuesday, Oct. 9, 2012 in Latham, NY. NOTE: ALL THE FOOD ITEMS BEING UNLOADED IN THESE PHOTOS WERE NOT DONATED BUT FOOD ITEMS THE FOOD BANK PURCHASED (Paul Buckowski / Times Union)

Warehouse supervisor Chris Hall unloads food items from a truck in...

Dock worker Jason Crosby unloads food items from a truck in the warehouse of the Regional Food Bank on Tuesday, Oct. 9, 2012 in Latham, NY. NOTE: ALL THE FOOD ITEMS BEING UNLOADED IN THESE PHOTOS WERE NOT DONATED BUT FOOD ITEMS THE FOOD BANK PURCHASED (Paul Buckowski / Times Union)

Dock worker Jason Crosby unloads food items from a truck in the...

Warehouse supervisor Chris Hall unloads food items from a truck in the warehouse of the Regional Food Bank on Tuesday, Oct. 9, 2012 in Latham, NY. NOTE: ALL THE FOOD ITEMS BEING UNLOADED IN THESE PHOTOS WERE NOT DONATED BUT FOOD ITEMS THE FOOD BANK PURCHASED (Paul Buckowski / Times Union)

Warehouse supervisor Chris Hall unloads food items from a truck in...

Dock worker Jason Crosby, left, and warehouse supervisor Chris Hall, right, unload food items from a truck in the warehouse of the Regional Food Bank on Tuesday, Oct. 9, 2012 in Latham, NY. NOTE: ALL THE FOOD ITEMS BEING UNLOADED IN THESE PHOTOS WERE NOT DONATED BUT FOOD ITEMS THE FOOD BANK PURCHASED (Paul Buckowski / Times Union)

But despite this nonprofit's great reliance on physical donations — about 50 percent of its food comes from private citizens, farms, food distributors and grocery stores — the food bank must buy another third of its supplies with the monetary gifts that keep its $6 million yearly budget afloat.

Considering the size of the food bank — it covers 23 counties from the New Jersey to the Canadian border — the need among the hundreds of pantries, soup kitchens and emergency shelters it serves became too great to fill with donations alone. The organization provides more than 25 million pounds of food a year to 1,000 agencies.

"We started buying 20 years ago to supplement our donations," said Mark Quandt, executive director of the food bank. "We can get better prices because we're buying in high volume — and it's much more convenient for (the food pantries)."

One of the agencies that buys from the food bank is Catholic Charities of the Diocese of Albany, which provides meals at 46 locations — everything from soup kitchens, to group homes, to summer camps, to emergency shelters — in Albany, Schenectady, Rensselaer and Saratoga counties.

Catholic Charities spent $1.3 million on food last year to feed abused children, disabled adults and the homeless. Jack Simeone, chief program officer at Catholic Charities, said his organization buys as much food as it can from the food bank, which sells items cheaply by the pound. But there are times when Catholic Charities must also go to regular local retailers, like BJ's Warehouse or Sam's Club, for other things that are needed, such as snacks for the charity's after-school programs.

Food isn't the only commodity that groups purchase en masse.

"No one buys more stuff than we do," said Michael Jacobson, executive director of Habitat for Humanity Capital District. "We'll spend $2 million this year, just our chapter." In 2012, Capital District's Habitat is slated to finish 16 homes in Albany, Rensselaer and Saratoga counties for the economically disadvantaged.

Habitat's budget is helped by the sweat equity of some 12,000 volunteers. But most construction materials, from lumber, to Sheetrock, to kitchen cabinets, must be bought. Jacobson said while some materials are purchased from chain stores, like Home Depot, others are bought from local retailers, like Curtis Lumber.

Only about $10,000 to $12,000 worth of items are donated for each home, like Whirlpool appliances and Valspar paint. And in those cases, Habitat benefits from the national organization's relationship with worldwide retailers.

"It is good business to be in good business with us," Jacobson said. "We believe in co-branding. If you're a supplier that does right by us, we feature you in all our materials."